Factors influencing valuation

Factors influencing valuation

 

There are various factors that influence the valuation of a company or firm.

• The nature of business in which the company is involved and history of the business.
• The economical benefits of the business in general and how good it is in the specific sector in which it is involved.
• The effectiveness of the management and its strategies.
• Value of assets and liabilities of the company and the financial status of the company.
• The capacity of the company to earn.
• The capacity of the company in paying dividends.
• The goodwill of the company and its intangible assets.
• The value of its shares in the private companies.
• The market share of the company.
• The adjustment in accounting.

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